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# Cadence Raises 2026 Growth Outlook To 21% For The Third Time This Year, With Record $8.2 Billion Backlog
- URL: https://www.bullished.co/cadence-raises-2026-growth-outlook-to-21-for-the-third-time-this-year-with-record-8-2-12594acb/
- Published: 2026-10-26T20:31:02.000Z
- Updated: 2026-10-26T20:31:02.000Z
- Description: The chip-design software maker also added $2.5 billion to its buyback authorization and guided fourth-quarter revenue to $1.695 billion to $1.725 billion.
- Author: Matteo Parrino
- Tags: Earnings, CDNS, Industry: Technology

Cadence Design Systems, which makes software, hardware and chip building blocks for designing electronic products, lifted its 2026 revenue growth outlook to 21% after [third-quarter revenue of $1.633 billion](https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000116/cdns10262026ex9901.htm?ref=bullished.co), up 22% from $1.339 billion a year earlier. The results, reported Monday in an [8-K](https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000116/cdns-20261023.htm?ref=bullished.co), came with a record backlog and a board-approved buyback increase of up to $2.5 billion.

## Raised outlook, record backlog

The CFO commentary calls it the [third raise this year](https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000116/cfocommentary10262026ex9902.htm?ref=bullished.co). Full-year revenue is now forecast at $6.387 billion to $6.417 billion, up from a prior $6.260 billion to $6.340 billion. Adjusted earnings are guided to $8.37 to $8.43 per share, versus $8.05 to $8.15 before.

Quarter-end backlog hit $8.2 billion, which the company called a record, and $4.2 billion of it is expected to be recognized as revenue over the next 12 months.

CFO John Wall said third-quarter growth came with "strong double-digit growth across all product categories, driven by growing momentum from AI-driven designs." Core EDA (chip design tools) revenue grew 20%, chip building-block IP grew 24%, and System Design and Analysis grew 30%. Hardware had another record quarter.

## Margins slip while adjusted earnings rise

Adjusted earnings rose to $2.11 per share from $1.93\. Standard-accounting earnings were flat at $1.05 per share.

Adjusted operating margin slid to 44.1% from 47.6%, and the standard-accounting margin fell to 26.2% from 31.8%. Amortization of acquired intangibles rose to 4.9% of revenue from 1.9%, and restructuring cost 2.6% of revenue against 2.0%.

The company's cash fell to $1.452 billion from $3.001 billion at the end of 2025, and nine-month cash paid for acquisitions was $2.143 billion.

## A bigger buyback

Cadence spent $400 million on repurchases in the quarter. Its board approved up to $2.5 billion more on October 23 under the existing program, which has no expiration date.

The company expects to spend about $400 million on buybacks in the fourth quarter. For the fourth quarter it guides revenue of $1.695 billion to $1.725 billion and adjusted earnings of $2.19 to $2.25 per share.

CEO Anirudh Devgan pointed to the launch of Maestro, a set of AI models for chip and system design, and said Cadence is "exceptionally well positioned to capitalize on the transformational Agentic AI opportunity."

Cadence hosted its results webcast Monday at 2 p.m. Pacific, with an archive available until December 17.

### Sources

- [8-K Filing — CADENCE DESIGN SYSTEMS INC (CDNS)](https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000116/cdns-20261023.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit cdns10262026ex9901.htm — CADENCE DESIGN SYSTEMS INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000116/cdns10262026ex9901.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit cfocommentary10262026ex9902.htm — CADENCE DESIGN SYSTEMS INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000116/cfocommentary10262026ex9902.htm?ref=bullished.co) — SEC EDGAR